It is AT&T's wireless division -- the former Cingular Wireless -- that will host the exclusive launch of the iPhone in June.

Stephenson pulled the device out of his pocket, and said: "This is the first time for me to touch one of these -- it will be a test of its ease of use."

For a moment, the cameras zoomed in on his hand, so the attendees sitting in a room half the size of a football field, could see the palm-sized device on large video screens. The screen went from black to the colorful home screen of various icons. But then a second later, the video switched to a pre-recorded iPhone commercial.

Stephenson said 1 million people have asked AT&T to let them know when the phone becomes available.